CRM: An Introduction to Customer Relationship
Management
Quick Reference Guide customizable
courseware
Types of CRM
Type Definition Example
Operational CRM Supports sales, marketing, and service functions. Your local computer outlet uses
Every interaction with a customer is added to a your telephone number to access
contact history. Staff can access information from the information about the purchase
database so that the customer does not have to history and names of each member
describe the same details repeatedly. of your household.
Analytical CRM A tool to analyze customer data. This helps to optimize You are purchasing a very reliable
marketing efforts and design targeted campaigns that car and you will only need to have
involve cross-selling (offering additional products or it serviced twice per year. To make
services that enhance the original purchase, like it even more effective for you, if
health insurance for a vacation package), up-selling you purchase this warranty
(McDonald’s famous line, “Would you like fries with protection package, we will provide
that?”), and retention (a company offering an incentive you with a replacement car
that builds customer loyalty, like “buy two, get one whenever you leave your vehicle
free”). Analytical CRM also considers elements such as with our shop.
customer behavior when pricing new products,
identifying factors for deciding which products to
develop, and the potential that customers might turn
to another supplier.
Collaborative Designed to allow internal departments like sales, Someone in sales reports a
CRM support, staff training, and development and customer comment. The customer
marketing, to share information that they have says that every time he sits down
collected during customer interactions with one with his keys in his trouser pocket,
another. For example, information about new features his car starts. He is really frustrated
that customers request or common problems that they because he has started his car a
report to the technical support center can be passed to couple of times while it was in his
product development. The goal in collaborative CRM is garage. He could solve the problem
to collect information and improve the quality of by storing his keys elsewhere, but
customer service. as a male he is accustomed to
putting his keys in his pocket.
Geographic CRM Coordinates information from geographic systems with A garden company calls existing
other functions of CRM. For example, transportation clients in a certain area to say that
companies can plan the most effective delivery routes they will have a truck in their area
when they have information about road conditions, on Tuesday because of a bug
construction, traffic flow, and parking availability infestation. While they’re in the
around commercial and residential areas. This area, they offer to swing by and
information is often compiled on a map and can even spray the trees of other clients in
be used to look for potential customers while the area.
managing existing customers in the region.
Requirement Driven Product Selection
Requirement driven product selection is a CRM
best practice. This process requires defining the
business need (or pain or problem, depending
on the issue), deciding which functions are
needed to meet the requirements, and then
defining the products that support the selection.
For example, McDenim is a clothing
manufacturer with about a 40% market share.
Their market share has dropped 5% in the last
18 months. Data analysis will demonstrate which
of their clients is buying what and point out
where the losses are coming from. Internal staff
and stakeholders will be involved in the program
and have a say in how to respond to the
problem.
Determining Function A Technical Checklist
© 2005-2012 Velsoft Training Materials Inc. All rights reserved.
Connection Requirements and Integration
o Does the program integrate into the
existing technology infrastructure?
o Operating system
o Ability to interact with existing database/
telephone systems and critical programs
Security Issues
o Does the program limit info access?
o Does the program allow the right people to
have the right data at the right time?
o Are provisions in place for usage
management at individual, departmental,
and screen levels?
o Are appropriate password and anti-hacking
measures in place?
Reporting Ability
o Can pre-formatted reports be
automatically sent to end users?
o Is there flexibility for end users to create
ad hoc reports?
o Do users have the ability to analyze data
meaningfully?
© 2005-2012 Velsoft Training Materials Inc. All rights reserved.